USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action when the price reached the resistance level identified at 1.3189.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time to 5pm New York time today.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.3074.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
Short entry after the next bearish price action rejection following a first touch of 1.3215 or 1.3294.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
We are starting to see a comeback by the U.S. Dollar albeit in a small way. This pair is where the greenback is really making itself felt as we see a break above former resistance, as well as a flipping of former resistance to support at 1.3074. Again, the big picture shows that the area around 1.3000 is a very crucial picot in determining the path of the price over the longer term.
There is no long-term trend so I cannot put a lot of faith in the longer-term direction of the price.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.